HP has rejected Xerox’s offer at least now

hp has rejected xerox’s offer at least now

Hewlett-Packard today strongly rejected Xerox Holdings Corp., a maker of copiers and printers, for a $33.5 billion acquisition of the personal offer from the PC and printer maker, saying it underestimated the company’s value. It is reported that Xerox proposed another takeover offer on November 5, and it was reported that the company’s board of directors discussed the company’s cash and stock purchase offer, the company’s market value is about 27 billion US dollars. But its annual income is about six times that of Xerox.

Although the offer expires on November 13, HP has slightly opened its doors, and the deal will merge with two troubled technology giants. After the report was released, investors were optimistic that the shares of the two companies would rise on November 6. But in a letter to John Wissending, the vice chairman and chief executive of Xerox today, HP said that the HP board “consistently concluded that it greatly underestimated HP and did not meet the best interests of HP shareholders.” The letter mentions “a highly qualified and ambiguous nature of proposal, with the potential impact of excess debt levels on the combined company stock.”

According to Xerox, the deal is a 20 percent premium to HP’s closing price of US$18.40 on November 5. The deal also said that based on the calculation of the offer price. This would bring at least US$14 billion in “value added” to shareholders. Implied multiples of HP’s US $4.8 billion earnings before the various adjustments over the past 12 months. In addition to grasping the uncertainty of financing, Hewlett-Packard also stabbed Xerox, pointing out that its revenue has dropped from 10.2 billion US dollars to 9.2 billion US$ since June last year, which “has proposed the development track and future prospects of our business.” Major issues.” In contrast, Xerox’s share price has risen 84% this year after cutting costs. It also reported upside space in the third quarter. And improved its 2019 outlook. Visentin said in a company conference call that better cash flow will enable it to conduct more transactions.

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